Job Openings in U.S. Rose in June to Four-Year High: Economy

The number of positions waiting to be filled in the U.S. rose by 105,000 in June to 3.76 million, from a revised 3.66 million the prior month. Photographer: David Paul Morris/Bloomberg

Aug. 7 (Bloomberg) -- Job openings in the U.S. rose in June
to the highest level in four years, indicating employment gains
may accelerate in the second half of the year.

The number of positions waiting to be filled climbed by
105,000 to 3.76 million, the most since July 2008, from a
revised 3.66 million the prior month, the Labor Department said
today in Washington. Hiring and firings cooled.

A rising need for workers shows some employers are
expanding as sales improve, laying the ground for a pickup in
hiring that may help boost consumer spending, which accounts for
about 70 percent of the economy. Payrolls rose more than
forecast in July even as the unemployment rate climbed to a
five-month high, the Labor Department reported last week.

“The economy is still growing, that’s underpinning labor
demand,” said Henry Mo, a senior economist at Credit Suisse in
New York. “Job availability is increasing, but we still need to
see employers put this into action. The economy will grow a
little better in the second half than in the first half and the
labor market will improve gradually.”

Elsewhere, the Swiss central bank’s foreign-currency
reserves surged to a record in July as the euro region’s
increasing turmoil forced policy makers to step up efforts to
defend their ceiling on the franc.

Payrolls rose by 163,000 in July after a 64,000 gain in
June, the Labor Department said on Aug. 3. The median estimate
of economists in a Bloomberg survey called for a 100,000
advance. Private payrolls, which exclude government agencies,
rose 172,000, also exceeding the median forecast.

The number of people added to headcounts declined to 4.36
million in June from the previous month, pushing the hiring rate
down to 3.3 percent from 3.4 percent, today’s report showed.

The increase in job openings was led by leisure and
hospitality, including hotels and restaurants. Openings at
health services and manufacturers also increased.

Finding Work

Americans who recently found work include Hilary duPont, a
22-year-old who graduated from Duke University in May. She just
got an offer to work in the New York communications department
of Chobani Inc., a maker of Greek-style yogurt, after three
months of searching.

“It was discouraging because I felt like everyone around me
had a job,” said duPont, who applied for more than 20 positions.
“You have to be persistent and repeatedly e-mail people, but not
be annoying. It’s a fine line, and it’s frustrating.”

Including the July gain in payrolls, the U.S. has recovered
4 million of the 8.8 million jobs lost as a result of the 18-month recession that ended in June 2009.

Jobs and the economy are central themes in the presidential
election campaign. The July report gave both President Barack
Obama and Republican challenger Mitt Romney data to buttress
their messages. Obama said the gain in payrolls marks the 29th
consecutive month of job growth and shows the U.S. is steadily,
if slowly, mending from the recession. Romney focused on the
rise in the unemployment rate as a blow to the middle class.

Demand for automobiles has helped some companies to expand.
Honda Motor Co., reliant on U.S. vehicle sales for more than
half its profit, said it is investing $40 million at a
Greensburg, Indiana, plant that produces the Civic compact and
will hire 300 workers later this year.

Total firings, which exclude retirements and those who left
their job voluntarily, decreased to 1.81 million from 1.96
million a month before, which was the highest level since July
2010, today’s report showed.

Fewer Quits

About another 2.11 million people quit their jobs in June,
down from 2.18 million in the prior month. That reduced the
total separations rate to 3.2 percent from 3.4 percent in June.

In the 12 months ended in June, the economy created a net
1.8 million jobs, representing 51.3 million hires and about 49.6
million separations, today’s report showed.

Considering the 12.7 million Americans who were unemployed
in June, today’s figures indicate there are a little more than
three people vying for every opening, up from about 1.8 when the
recession began in December 2007.

The payrolls report last week showed the jobless rate
climbed to 8.3 percent in July from 8.2 percent. Unemployment
has exceeded 8 percent for 42 consecutive months, the longest
stretch in monthly records dating to 1948, and is one reason why
Federal Reserve policy makers said they are prepared to take new
steps if needed to boost the economy.

Fed officials, after meeting last week, left unchanged
their statement that economic conditions would likely warrant
holding the benchmark interest rate target near zero at least
through late 2014. They said unemployment “remains elevated.”

Financial firms trimming jobs include Morgan Stanley, whose
headcount will drop by about 700 in the second half, bringing
its total 2012 reductions to 4,000. Deutsche Bank AG will cut
about 1,900 jobs by year-end, mostly outside Germany, and is
shrinking compensation and benefits.